China's consumer and producer prices picked up slightly last month but remained below target, official data showed on Sept. 9, as the world's second-largest economy grapples with weak domestic demand.

Much of the anticipated pickup reflects a favorable base-effect comparison and higher commodity costs, rather than a genuine strengthening in household demand.

Chinas consumer inflation accelerated to 0.8% in August, while producer prices rose 3.8%, both slightly above July levels. Despite the improvement, subdued domestic demand remains…